Chapter 01 · Section 1.1

Liquidity

                    EXCHANGE-TRADED OPTIONS 

Contract Terms             standard
Delivery                   less than 10%
Trading                    centralized
Credit Risk                clearing house
Liquidity                  ...........

Compared to options that are not traded on an exchange, exchange-traded options uually have:

a) a high degree of liquidity.
• b) a low degree of liquidity.
  No. Generally, with exchange-traded options, there is a large number of traders willing to buy and sell. Therefore, liquidity is . . .
  c) almost no liquidity.

(Click here for help)